2020 SUSTAINABLE DEVELOPMENT REPORT - Remgro
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SUSTAINABLE
DEVELOPMENT
REPORT
2020SUSTAINABLE DEVELOPMENT
REPORT
SUSTAINABILITY HIGHLIGHTS
SUCCESSFUL INCLUSION IN THE
FTSE/JSE RESPONSIBLE
INVESTMENT INDEX
ON 30 JUNE 2020
“OUR TRUE POWER
CONTINUED PARTICIPATION IN THE
CARBON DISCLOSURE
DOES NOT LIE IN OUR
PROJECT (CDP) SAMENESS, BUT IN
CONTINUED MEMBERSHIP OF THE
OUR RICH DIVERSITY:
DIVERSITY OF FAUNA
ETHICS INSTITUTE OF AND FLORA; PEOPLE
SOUTH AFRICA AND CULTURES.”
Dr Anton Rupert
OBTAINING OUR LEVEL 6
CONTRIBUTOR STATUS IN TERMS
OF THE
BBBEE SCORECARD
INSTALLATION OF
A SOLAR ENERGY
SYSTEM AT THE
REMGRO HEAD OFFICE
1 Remgro LimitedINTRODUCTION opportunities management and technology and information
Remgro’s value system incorporates the guidelines for doing governance are addressed in the Corporate Governance and Risk
business successfully drawn up by its founder, Dr Rupert, nearly and Opportunities Management Reports, the Sustainable
60 years ago. These values include the following: Development Report provides a better understanding of
Remgro’s efforts on the social and environmental front as it
• Honesty – because it lasts the longest pursues the maximisation of value creation over the short,
• Correctness – because it creates trust with friends medium and long term. Refer to the sustainability highlights on
and opponents the previous page for Remgro’s external recognition and
• Courtesy – which means dignity without pride and friendliness achievements during the reporting period in this regard.
without subservience
• Service – in every respect to your client, your fellow human REMGRO GROUP PRINCIPLES
being, your country As a Company, Remgro has a responsibility to motivate the
• Mutual support – so that you push others up the ladder of Remgro Group Companies to always conduct their businesses
success while climbing yourself, because if you pull others within the ambit of the law and with integrity. Remgro Group
down, you will also fall Companies are encouraged to develop and implement such
• Trust – the belief that all will work out well if everyone is doing company policies, procedures, training and internal reporting
their duty structures to reflect the expression of their commitment to these
• Accountability – that people are responsible for their actions principles throughout their organisations. Remgro believes that
and the diligence wherewith they administer the Company’s the application of these principles will contribute towards
assets and information achieving greater tolerance and better understanding amongst
• Diversity – to build partnerships with people from a range of people, and advance the culture of peace.
different social and ethnic backgrounds
Accordingly, Group Companies are encouraged to:
Remgro believes that these values incorporate the spirit in which
• Express their support for universal human rights and,
it strives to be a good corporate citizen. From the above it is
particularly, those of their employees, the communities within
evident that the three pillars of sustainable development, namely
which they operate, and parties with whom they do business.
economic, social and environmental sustainability practices, have
always been part of Remgro’s core system of values and, flowing • Promote equal opportunity for their employees at all levels of
therefrom, Remgro acknowledges its social and environmental the Company with due sensitivity to issues of colour, race,
responsibility. Remgro intentionally interacts and responds to the gender, age, ethnicity or religious beliefs, and to eschew any
opportunities and challenges presented by the dynamic system conduct that could manifest in the exploitation of children,
created by these three pillars and the capital at its disposal, physical punishment, female abuse, involuntary servitude, or
including the financial, manufactured, intellectual, human, social other forms of abuse.
and relationship and environmental capitals. • Respect their employees’ rights to freedom of association.
• Compensate their employees fairly so as to enable them to
Remgro is fully committed to managing its business sustainably meet at least their basic needs and to provide them
and upholding the highest standards of ethics and corporate opportunities to improve their skills and capabilities to raise
governance practices. While corporate governance, risk and their standard of living.
COMBINED ASSURANCE
BUSINESS PROCESSES
ASSURANCE OUTPUT ASSURED PROVIDER
Independent external auditor’s report Financial reporting PricewaterhouseCoopers Inc.
Internal audit reports Risk-based selection of audit areas Remgro Risk Management and
Internal Audit
Internal risk and opportunities All key business risk and Internal management reviews, assisted
management opportunities areas by Remgro Risk Management and
Internal Audit
BBBEE contributor verification Broad-based black economic AQRate Proprietary Limited
empowerment
External calculation of carbon Carbon footprint calculation Carbon Calculated, assisted by an
footprint independent consultant
Safety, Health and Environmental OSH Act and related compliance EHS Green Leaf Consultancy
procedures
Sustainable Development Report 2020 2• Provide a safe and healthy workplace; protect human health conduct that are applicable to all directors and employees. The
and the environment; and promote sustainable development. code is available to all employees on Remgro’s in-house intranet
• Promote fair competition including respect for intellectual and a copy is provided to all new employees. The code as well as
and other property rights, and not offer, pay or accept bribes. a formal Gifts Policy also provide strict policies regarding gifts,
• Work with governments and communities in which they do invitations or favours received from suppliers or any other parties.
business to improve the quality of life in those communities The offering of favours and/or gifts to gain unfair commercial
particularly with respect to their educational, cultural, economic advantages is also strictly prohibited.
and social wellbeing.
The Group furthermore requires ethical behaviour from its
• Provide affordable medical support to all employees.
suppliers and business partners and ensures that terms of trade
• Promote the application of these principles by those with
and related agreements enforce ethical behaviour along with
whom they do business.
responsible environmental consumption and compliance with
EXTERNAL ASSURANCE legislation enshrining human rights.
We acknowledge the increasing requirements from investors and The Audit and Risk Committee monitors compliance with the
regulatory and other guidelines, such as the King IV Report on code and addresses among other things, any instances of fraud
Corporate Governance for South Africa (2016) (King IV) and the or irregularities that may arise. The Group has an effective fraud
integrated reporting guidelines, for the external assurance of prevention and detection process and ensures compliance and
selected non-financial information. We further acknowledge our risk mitigation. No material investigations were concluded
accountability to our stakeholders to present information that is during the reporting period.
relevant, accurate and reliable. In this regard it should be noted
The Company has implemented an Ethics hotline to enable
that Remgro follows a combined assurance model, incorporating
any employee or other stakeholder to report knowledge of
management, internal audit and external assurance (e.g. BBBEE
perceived and alleged irregular or unethical behaviour in a
scorecard verification, Carbon Disclosure Project (CDP)
confidential and controlled environment. The Ethics hotline
verification), as illustrated in the table on page 2. We believe that
is managed by an independent third party and is available
these assurance methods provide the necessary assurance over
on a 24-hour basis. During the year no alleged incidents were
the quality and reliability of the information presented. The
reported. Where calls may be received which relate to alleged
different options and levels of external assurance available are
irregularities at investee companies, the system provides for
continuously being reassessed to determine the way forward on
those to be directed to the appropriate governance structures
external assurance.
at the respective investee companies via the Remgro
MANAGEMENT’S APPROACH TO representatives serving on the boards of these companies.
SUSTAINABILITY
Remgro’s Board is ultimately accountable for the performance Remgro Ethics Hotline 0800 222 536
of the Company, appreciating that strategy, risk, performance or email remgro@tip-offs.com
and sustainability are inseparable. In this regard the Board
has delegated the general oversight and reporting of COMPETITION
sustainability to the Audit and Risk Committee, assisted by The Group supports and adheres to the relevant competition
the Social and Ethics Committee. The role and function of and anti-trust laws applicable in the various jurisdictions in which
these committees are dealt with in more detail in the the Group operates. During the year under review no enquiries
Corporate Governance Report and the Social and Ethics regarding anti-competitive, anti-trust or similar conduct were
Committee Report on pages 65 and 103 of the Integrated received which resulted in fines being levied.
Annual Report respectively.
COMPLIANCE
ETHICS, COMPETITION AND COMPLIANCE During the year under review there were no incidents of material
ETHICS non-compliance with any laws, regulations, accepted standards
or codes, and no fines were imposed in this regard.
The Board believes that ethical behaviour stems from appropriate
value systems inherent to the people in the Company’s employ In addition there were no incidents of alleged infringement of
as directed and supported by visual ethical leadership and a any human rights or environmental malpractices reported or
value-driven corporate culture. Leadership based on ethical identified.
foundations results in a culture of ethical and moral behaviour
and compliance with laws, rules, codes and standards. The Board STAKEHOLDER RELATIONS
therefore retains the responsibility to establish and maintain a Our relationship with all our stakeholders is based on the
culture of honesty, integrity, competence, transparency, fairness, following values that are entrenched and supported by Remgro’s
responsibility and accountability in order to position the Code of Ethics, and which values assist the effective leadership
Company as an investment partner of choice that strives to by the Remgro Board in achieving strategic objectives and
create sustainable stakeholder value over the long term. This is positive outcomes over time:
underscored by ethical leadership as ethics cannot be regulated
• Integrity, in acting ethically beyond mere compliance
but stems from personal conviction.
• Competence, in ensuring due care, skill and diligence are
In this regard the Company has adopted a Code of Ethics (the exercised
code) that provides a framework of ethical practices and business • Responsibility, for the assets and actions of the Company
3 Remgro LimitedShareholders and
the investment
South African community
government and Employees
regulatory
bodies
Integrity
Transparency Competence
Fairness Responsibility
Accountability
Suppliers Investee
and service companies
providers and other
shareholders of
such investee
Community
companies
• Accountability, for justifying its decisions and actions to Special care is taken to protect minority shareholders from
shareholders and other stakeholders actions by or in the interest of the principal shareholder that may
• Fairness, in considering the legitimate interest of stakeholders be to their detriment. In this regard the Lead Independent
• Transparency, in disclosing information in a manner that Director acts as chairman during meetings in situations where
enables stakeholders to make informed decisions about the the independence of the existing Chairman may be potentially
Company’s performance and sustainability conflicted.
Remgro’s Board is the ultimate custodian of its corporate Communication with investors is based on the principles of
reputation and stakeholder relationships. In this regard a formal timely, balanced, clear and transparent information. In this regard
Stakeholder Policy sets out the approach and framework for the investment community has access to the same information as
Remgro with respect to stakeholder engagements, ensuring Remgro shareholders. Firm protocols are in place to control the
that the approach takes into account appropriate corporate nature, extent and frequency of communication with investors.
governance guidelines. Shareholders and the investment community are encouraged to
Remgro utilises a wide variety of communication methods to attend Remgro’s Annual General Meetings where topical matters
ensure that its communication with stakeholders is clear and are discussed openly. Further interactions with institutional
understandable, as well as transparent, balanced and truthful, investors take place twice a year at the dial-in interim and final
and sets out all relevant facts, whether positive or negative. Care results presentations, where questions can be directed to the
is taken to ensure that engagement with stakeholders is, where Chief Executive Officer (CEO) and Chief Financial Officer (CFO).
appropriate, not just one-way communication but constructive, The investment community is encouraged to contact the Remgro
partnership-based engagement. This ensures that all legitimate investor relations manager directly for any investor related
stakeholder expectations are identified and addressed as far as queries. The investor relations contact details are available on
the investor segment of the Company's website.
possible.
The most recent and historic financial and other information is
Remgro, like other organisations, has an economic impact
published on the Company’s website at www.remgro.com.
on its stakeholders through, amongst other things, the
generation and distribution of value, the creation of EMPLOYEES
employment opportunities, remunerating employees fairly
In order for Remgro to be able to achieve its main objectives it
and competitively, and our corporate social investment.
is essential to attract and retain employees of the highest
Stakeholders are continuously engaged on matters relevant
calibre. Our employees are treated fairly and remunerated
to them, as reported on in the Integrated Annual Report. competitively and Remgro strives to afford all staff the
opportunity to realise their full potential. During corporate
SHAREHOLDERS AND THE INVESTMENT actions special care is taken to ensure that employees
COMMUNITY belonging to the Remgro Equity Settled Share Appreciation
In pursuing its primary objective to maximise value creation and Right Scheme, Share Appreciation Rights (SAR) Plan and
sustainable growth, Remgro takes particular care to ensure that Conditional Share Plan (CSP) are not treated more favourably
all shareholders, or classes of shareholders, are treated equitably. than ordinary shareholders.
Sustainable Development Report 2020 4As Remgro is an investment holding company with a small staff terms of the underlying shareholders’ agreements and Remgro
complement at head office level, communication with strives to add value to these investments.
employees is generally kept informal and is conducted through
a variety of channels, including email updates, the in-house COMMUNITY
intranet, Remgro website, information sessions, digital Corporate citizenship, the commitment of a business to
conferences and notice boards. Care is taken that all contribute to sustainable economic development, endorses the
communication with shareholders is also communicated to principle that no business exists in isolation but undeniably forms
employees. an integral part of the environment in which it operates and to
The Company recently started with a “Staying Future Fit” (SFF) which it owes certain responsibilities.
change management programme focusing on a number of In its relationship with the community Remgro strives to be a
specifically identified initiatives identified through employee value partner and in this regard its involvement in the community
focus groups. These initiatives inter alia included the following: focuses on eradicating the effects of poverty and investing in
• Workshops on diversity, inclusivity, trust and teamwork young people from disadvantaged communities in the belief
• Targeted functional and leadership development that such an investment will provide sound dividends far into the
• Formalised and efficient communication channels future. Remgro’s corporate social investment initiatives and
• Robust personal development and performance management donations are discussed in more detail on pages 9 to 12.
processes.
SUPPLIERS AND SERVICE PROVIDERS
Prior to the Covid-19 lockdown the SFF journey gained a lot of
Remgro believes in building long-term partnerships with service
momentum and many of the initiatives were either implemented
providers through establishing a relationship of mutual trust and
or in the process of being finalised for implementation. During
respect. Various criteria play a role in selecting suitable service
the lockdown the Management Board and Senior Management
providers, such as compliance to quality standards, the stability
started with a process to enhance the SFF change management
and proven track record of the organisation, BBBEE status and
programme to support and grow the Company post the RMH
available support network.
Unbundling and the Covid-19 pandemic. These changes will
be finalised and rolled-out to the organisation in the new As part of ensuring alignment of its service providers with Remgro
financial year. company values, Remgro has implemented a process to update
Service Level Agreements with key suppliers to reflect its
INVESTEE COMPANIES AND OTHER expectations regarding environmental responsibility, compliance
SHAREHOLDERS OF SUCH INVESTEE with human rights and anti-corruption policies.
COMPANIES As Remgro is an investment holding company it has been
Remgro’s performance is directly linked to the performance of its determined that its cost structure be constantly measured
underlying investee companies and accordingly communication against that of unit trusts to ensure that its shareholders are not
with those entities and co-shareholders is regarded as very prejudiced. As part of managing corporate costs, good
important. Relationships with investee companies are managed relationships are maintained with suppliers and service providers.
principally through board representation, with Remgro directors
or senior management acting as non-executive directors on the SOUTH AFRICAN GOVERNMENT AND
investee companies’ boards. These representatives interact with REGULATORY BODIES
the directors and senior management of investee companies at An open and honest relationship is maintained with the
investee companies’ board meetings and on an ongoing basis Government and relevant regulatory bodies. In this regard
throughout the year as necessary. Representatives of investee communication is on an ad hoc basis as and when the need
companies are encouraged to arrange to meet with Remgro arises, and is usually in the form of formal meetings. Regulatory
senior management to discuss their business. All dealings with bodies such as National Treasury, the South African Reserve Bank
co-shareholders in the investee companies are done fairly in (SARB) and the JSE Limited (JSE) are kept up to date regarding
FIGURE 1
BBBEE SCORECARD
Element Indicator Weighting Score
Equity ownership Percentage share of economic benefits 25 18.30
Management control Percentage black persons in executive management and/or
executive board committees 19 6.92
Skills development Skills development expenditure as a proportion of total payroll 20 12.83
Enterprise and supplier Procurement from black-owned and empowered enterprises
development as a proportion of total assets, as well as the average value
of supplier development and enterprise development
contributions as a percentage of net profit after tax 40 29.65
Socio-economic development Corporate social investment for the benefit of black persons 5 5.00
Total score 109 72.70
5 Remgro Limitedcorporate actions in accordance with all applicable laws and criteria only relates to the activities at Remgro’s head office in
regulations. Annual meetings are held with the SARB in order to Stellenbosch. For more detail regarding the BBBEE initiatives at
keep them up to date regarding Remgro’s offshore activities. investee company level, refer to the section “BBBEE at investee
companies” on page 7.
BROAD-BASED BLACK ECONOMIC
EMPOWERMENT (BBBEE) MANAGEMENT CONTROL
INTRODUCTION The Board transformed over time, with six of the 12 non-
The Board believes that BBBEE is a social, political and economic executive directors (50%) being black persons. On Management
imperative and it supports and encourages the Company’s Board level, one of the five members is a black person.
subsidiaries, associates and joint venture initiatives in this regard.
EMPLOYMENT EQUITY
To the extent that Remgro’s subsidiaries, joint ventures and
Employment equity represents Remgro’s most significant
associates implement BBBEE, Remgro’s shareholders effectively
transformation challenge. A five-year Employment Equity plan
participate in BBBEE initiatives and the associated benefits and
is submitted to the Department of Employment and Labour
costs thereof.
where Remgro’s transformation objectives are set out in detail.
Remgro measures its BBBEE status against the generic Progress against this five-year plan is reported on annually to
scorecard criteria set by the Department of Trade and Industry. the Department of Employment and Labour. Although efforts
In terms of the latest assessment of Remgro’s BBBEE status are focused on improving the Company’s black representation
performed during September 2020, Remgro obtained a score at management level, low staff turnover and limited organic
of 72.70 (2019: 72.95), thereby obtaining a level 6 contributor growth remain limiting factors. More detail regarding
status. The details of the assessment are fully set out in employment equity is presented on page 7.
Figure 1 on the previous page and includes the BBBEE Remgro’s summarised employment equity as at 30 June 2020
initiatives of Remgro’s main independent operating subsidiaries, is presented in Figure 2 on the next page and sets out
RCL Foods Limited (RCL Foods), Distell Group Holdings Limited the distribution by race of permanent employees per
(Distell), Siqalo Foods Proprietary Limited (Siqalo Foods) and occupation level.
Wispeco Holdings Proprietary Limited (Wispeco).
SKILLS DEVELOPMENT
EQUITY OWNERSHIP Remgro complies with the requirements of the Skills Development
Verification of BBBEE ownership is governed by the amended Act (No. 97 of 1998) in terms of which a fixed percentage of its
Codes of Good Practice on BBBEE, which were gazetted on payroll is paid as a training levy to the South African Revenue
11 October 2013 in terms of Section 9(1) of the Broad-Based Service. An annual report concerning all the training which
Black Economic Empowerment Act (No. 53 of 2003). has taken place in the Company is also submitted to the
It should be noted that black ownership would be included in relevant SETA.
the shareholdings in Remgro held by institutional investors (refer
to page 144 of the Integrated Annual Report where Remgro’s PREFERENTIAL PROCUREMENT
major shareholders are disclosed). An annual exercise is As Remgro is not an operating company it has a small
undertaken to determine and accordingly include the indirect procurement function and its procurement profile is
black ownership through these mandated investments. characterised by a high service component as opposed to
Furthermore, the provisions of Code Series 100, Statement 102 materials purchased. Remgro purchases more than half of its
– Recognition of Sale of Assets, as well as the exclusion of foreign goods and services from BBBEE-accredited vendors. The
operations, are also taken into account. improvement of the preferential procurement score remains a
focus area for Remgro.
Remgro’s equity ownership score is as follows:
Verified equity ownership Target 30 June 30 June
score score 2020 2019
Voting rights black people 4.00 3.08 2.85
Voting rights black women 2.00 1.88 1.65 “IT IS THEREFORE
Economic interest black
IMPERATIVE TO
ATTRACT,
people 4.00 3.14 2.82
Economic interest black
SELECT AND
women 2.00 1.98 1.74
Economic interest of black
designated groups 3.00 3.00 3.00
RETAIN
EMPLOYEES
Black new entrants 2.00 – –
Net value 8.00 5.22 4.70
25.00 18.30 16.76
OF THE HIGHEST
Although Remgro’s BBBEE score includes the initiatives of
RCL Foods, Distell, Siqalo Foods and Wispeco, the discussion CALIBRE.”
below regarding the other elements of the generic scorecard
Sustainable Development Report 2020 6FIGURE 2
SUMMARISED EMPLOYMENT EQUITY REPORT (AS AT 30 JUNE 2020)
MALE FEMALE FN TOTAL
OCCUPATIONAL LEVELS A C I W A C I W M F
TOP MANAGEMENT – 1 – 3 – – – 1 – – 5
SENIOR MANAGEMENT – 2 – 13 – – 1 3 – – 19
PROFESSIONALLY QUALIFIED
AND EXPERIENCED SPECIALISTS
AND MID-MANAGEMENT – 1 2 20 2 3 – 9 – – 37
SKILLED TECHNICAL AND ACADEMICALLY
QUALIFIED WORKERS, JUNIOR
MANAGEMENT, SUPERVISORS,
FOREMEN AND SUPERINTENDENTS 4 12 – 12 2 10 1 25 – – 66
SEMI-SKILLED AND
DISCRETIONARY DECISION-MAKING 20 19 – 1 5 7 – – – – 52
GRAND TOTAL 24 35 2 49 9 20 2 38 – – 179
A | African C | Coloured I | Indian W | White FN | Foreign Nationals M | Male F | Female
ENTERPRISE AND SOCIO-ECONOMIC DEVELOPMENT account resignations (thus avoidable employee turnover), the
A considerable amount of time and resources are spent above numbers reduce to 6.1% for 2020 and 2.2% for 2019.
internally on business development and corporate social
investment (CSI) initiatives. Further details regarding the RECRUITMENT AND SELECTION POLICY
Company’s CSI initiatives are provided on page 9. In order to ensure that Remgro remains an investment partner of
choice it is imperative to attract, select and retain employees of
BBBEE AT INVESTEE COMPANIES the highest calibre. The Company recruitment and selection
Remgro monitors and contributes to its investees’ BBBEE process is designed not to judge a candidate by his/her inherent
performance through its board representation and participation, characteristics that could lead to discrimination against
and facilitation of corporate actions in these investee companies. employees or applicants based on gender, race, religion or any
The BBBEE status of Remgro’s investee companies is presented other factor as defined in employment legislation.
in the “Investment reviews” section on page 38 of the Integrated
Annual Report.
EMPLOYMENT EQUITY
Remgro endorses the principles of the Employment Equity (EE)
Further details regarding the BBBEE status of Remgro’s operating Act (No. 55 of 1998) and in this regard its employment equity
subsidiaries are provided in the section dealing with policy strives to offer equal opportunities to all employees and
“Sustainability at operating subsidiaries” on page 12. aims at identifying suitable individuals and developing and
compensating them in line with their performance, dedication
OUR PEOPLE
and loyalty. Special attention is given to those groups which, for
EMPLOYEE COMPOSITION historic reasons, may fit the criteria of “previously disadvantaged
Remgro believes that the quality of its staff represents an important persons”.
sustainable advantage. Being an investment holding company, it
During the 2018 financial year a process was concluded to revitalise
has a relatively small staff complement, with only 179 people
and enhance the consultative EE structures in preparation of the
being employed as at 30 June 2020 (2019: 184 employees).
consultation process to develop a new EE plan as required by
Refer to Figure 3 on page 8 where more detail regarding the
the Act. The consultation process, through these established
composition of our employees by race, gender and age
structures, ensured a much more inclusive engagement process.
is illustrated.
Through this inclusive engagement process a new EE plan was
For the year under review Remgro’s employee turnover rate developed, approved by the Social and Ethics Committee and
was 10.6%, compared to 5.4% for the comparative year to submitted to the Department of Employment and Labour.
30 June 2019. The turnover rates were calculated by using the Annually progress against the plan is reported to the
total number of employees at year-end. By only taking into Department of Labour and the Social and Ethics Committee.
7 Remgro LimitedEMPLOYEE REMUNERATION FIGURE 3
Our objective is to reward our employees fairly and competitively, COMPOSITION OF EMPLOYEES
according to their capabilities, skills, responsibilities and (AS AT 30 JUNE 2020)
performance levels. The level of salaries we pay is one of a
number of elements in our strategy to retain, motivate and,
where necessary, recruit high-quality people. In addition, Remgro
also offers its staff a stimulating working environment. Remgro
has a formal Remuneration Policy that sets out the remuneration
39%
principles for the organisation as a whole. Refer to the Female
Remuneration Report on page 84 of the Integrated Annual
Gender
Report where Remgro’s remuneration principles are set out 61%
in detail. Male
Remgro offers retirement benefits to its employees in the form
of a defined-benefit (closed fund) and a defined-contribution
fund that are administered independently of the finances of the
Company. In addition, employees are also offered medical
insurance and study assistance.
TRAINING AND SKILLS DEVELOPMENT
The main purpose of training is to equip employees in such a
way that they can realise their full potential to benefit the
Company and themselves. Due to the specialised nature of
Remgro’s workforce resulting from it being an investment 51%
holding company, no prescribed training programmes are African,
Coloured, Indian
promoted. Individuals are, however, encouraged to attend
training programmes which will better equip them to do their
Race
jobs. During the past few years workshops and training sessions
49%
White
on King IV, Anti-corruption practices, the pending Protection
of Personal Information legislation and the Competition Act
(No. 89 of 1998) were held to ensure that Remgro’s directors,
management and employees are equipped to implement and
practise sound corporate governance at all levels where they
are involved.
HEALTH AND SAFETY
The Company has a duly constituted Health and Safety 39%
Committee, as required by the Occupational Health and Safety 51 years and older
Act (No. 85 of 1993). The committee is a subcommittee of the
Risk, Opportunities, Technology and Information Governance 33%
Operational Subcommittee and ensures that the Company 41 – 50 years old
provides and maintains a safe and healthy risk-free environment Age 25%
for staff and visitors by identifying risks and ensuring that controls
designed to mitigate these risks are effective and complied with. 31 – 40 years old
COVID-19 3%
30 years and younger
To ensure a safe environment for staff and visitors during the
Covid-19 pandemic, a formal Covid-19 Preparedness and
Response Plan was prepared and continues to be implemented.
The plan makes provision, inter alia, for the following:
• Compliance with all legal requirements as far as Covid-19 is
concerned
• Enabling all employees to work from home as far as possible
• Precautionary measures put in place at Company premises to
contain the spread of the virus
• General Covid-19 awareness campaigns
Sustainable Development Report 2020 8HIV/AIDS institutions in need. Donations to qualifying institutions are
From an investment holding company perspective, the risk of made on an annual basis for a specific period and, although such
HIV/Aids comprises two elements: contributions cover a wide range, there are two noticeable
exceptions: political parties and religious institutions. Remgro
GROUP RISK respects its employees’ choice to participate in these institutions,
Given the potential impact of HIV/Aids on the markets, on but does not exercise a choice itself.
human capital, cost of employment and on the operational During the year under review Remgro’s CSI spend amounted to
processes of the various businesses invested in, this risk is R25 million (2019: R24 million), as set out in the table below.
managed within the governance structures of the various
investee companies. The progress of these relevant policies and Year Year
strategies is monitored against best practice standards. ended ended
30 June 30 June
COMPANY RISK 2020 2019
Remgro has a formal HIV/Aids Policy and is committed to actively Summary of CSI spend R million R million
manage the pandemic, and the business risks associated with it.
The policy makes provision, inter alia, for the following: Community development 6 7
Cultural development 3 3
• Compliance with all legal requirements as far as HIV/Aids is Entrepreneurship, training
concerned and education 11 10
• No discrimination against employees or potential employees Environment 2 2
based on their HIV status Healthcare – 1
• Strict confidentiality of information on the HIV status of
Sport development 3 1
employees
25 24
• General measures to prevent accidental infection
Remedi Medical Aid Scheme, of which most of Remgro’s staff are
During the year under review the most notable initiatives Remgro
members, has a management plan for HIV/Aids in which
has been involved in, were the following:
employees may choose to participate.
COMMUNITY DEVELOPMENT
INVESTING IN THE COMMUNITY
Strengthen our Society (SOS) – was founded by Remgro,
During the year under review Remgro made two notable
together with the Greater Stellenbosch Development Trust,
donations, which are not included under Remgro’s annual
to broaden the scope of a selected group of charitable
corporate social investment (CSI) below.
organisations in the region. Most community institutions are not
A once-off donation of R500 million was made to The South lacking leadership or enthusiasm, but they are often hamstrung
African SME Relief Trust in support of the Sukuma Relief Fund. by a lack of structural capacity which prevents them from
This Fund was created to provide financial assistance and relief breaking through and realising their full potential.
to Small and Medium Enterprises adversely affected by measures
The SOS initiative aims to bridge the gap between interested
taken to contain the spread of the Covid-19 pandemic. By the
business enterprises and charitable organisations and
middle of August 2020, financial assistance of more than
endeavours to assist beneficiaries with funding, governance,
R750 million had been committed to more than 3 400 small
expert advice, human relations, systems, management and
businesses, positively affecting more than 31 000 employees.
legal matters. A very positive outcome of the SOS programme
An amount of R25 million was committed to the Khaya Lam is the sense of belonging, and of being valued, experienced by
project, of which R9 million was allocated during the year under participants.
review. This project aims to facilitate the granting of title deeds
Over the past year SOS capacity building and training activities
to qualifying township residents through helping them to break
included:
through the bureaucratic lock-jam which has deprived them of
this entitlement. The underlying belief of this initiative is that the • People management and team building
acquisition of title deeds will provide the owners with • Basic conditions of Employment Act
unambiguous rights of access to tradeable property assets and • In “Harmony” – a journey of self-discovery
thus facilitate their entry into the formal markets. The initiative is • Funding applications
currently focused to the Western Cape where it was kicked off. • Rendering support and interventions where necessary to SOS
partners
Remgro’s CSI initiatives and donations programme cover a broad
spectrum of society and can be summarised as follows: Ikamva Labantu – is a leading community-led non-governmental
organisation supporting the socio-economic development of
• Community development
Cape Town's township communities. The organisation works
• Cultural development
closely with community members to identify and address the
• Entrepreneurship, training and education
critical needs of children, youth and senior citizens. The past
• Environment
year's community programmes focused on early childhood
• Healthcare
development, safety and care of children after school and the
• Sport development
wellbeing of older persons. In addition to this, Ikamva Labantu
Remgro aims to maintain a CSI spending of approximately 2.5% continually supports current and emerging community initiatives
of its net free cash flow annually. In this regard, an official CSI with the focus on protection and promotion of human rights and
committee meets regularly to consider and approve grants to dignity. (www.ikamva.org.za)
9 Remgro LimitedStellenbosch Community Development Programme (SCDP) Return on investment since inception in 2004 includes over
trading as Love to Give – has operated in Kayamandi, 5 000 annual tuition fee scholarships awarded, a postgraduate
Stellenbosch for the last 15 years, with Remgro being one of employment rate of over 90%, eight Mandela Rhodes Scholars
the key founding funders who have been the backbone to the and three Kofi Annan Fellows. (www.tsiba.ac.za)
success of the organisation. They take a holistic approach to
SciMathUS – The SciMathUS programme is a university
breaking the poverty cycle. The aim has been to ensure that the
preparation programme that operates from the Stellenbosch
basic needs of the family are met, and then to assist individuals
University Centre of Pedagogy. It is part of the Education Faculty
to either find a job or start a small business. There are vegetable
at Stellenbosch University (SU).
gardens, a toy and book sharing library, as well as daily early
childhood development training at the centre. SciMathUS was able to achieve its objective of improving the
2019 student cohort’s National Senior Certificate marks in
During the unprecedented Covid-19 time, priorities have had to
Mathematics, Physical Science and Accounting and contributed
change, and the focus is now solely on providing food relief to
to widening access to higher education for educationally
families.
disadvantaged students into highly selective fields of study. With
They are currently supporting approximately 600 families with some opting to go to other universities, most of these students
monthly food parcels and are actively fundraising to be able register for undergraduate studies at SU.
to increase the number of families that are supported and to
Over the last 19 years, 1 592 students have completed the
ensure that sufficient funds are available to continue supporting
SciMathUS programme. In 2019, 52 SciMathUS alumni graduated
the current beneficiaries for the entire duration of the Covid-19
at SU with a first qualification, 11 with a second qualification and
crisis. (www.lovetogive.org.za)
one student, a third qualification. (www.sun.ac.za)
CULTURAL DEVELOPMENT SUNCEP (Stellenbosch University’s Centre for Pedagogy)
Field Band Foundation (FBF) – Remgro’s Cape Whalers is – supporting senior school learners in the Stellenbosch
currently the Field Band’s number one performing band. On region to prepare for, and access, higher education. SUNCEP
15 February 2020, 14 of Field Band’s top bands travelled to runs programmes in mathematics and physical sciences for
the Wanderers stadium in Johannesburg to compete in the academically deserving grade 10 to 12 learners throughout South
FBF National Championships. It was a day of great excitement Africa. These programmes are presented by qualified tutors over
and showmanship, and the Cape Whalers from Macassar was five-day contact sessions during the March, June and September
awarded the Bertie and Ronnie National Champions Trophy and school holidays. It aims to strengthen skills in mathematics and
Gold Medal. The 120-band members with their amazing and sciences, enabling learners to attain adequate marks to access
ever-supportive chaperones also received the following awards: tertiary studies.
• Best overall visual performance The participating schools from Stellenbosch, from which
• Black like me best overall music performance trophy 20 learners per grade were selected, were Cloetesville, Kylemore,
• Best marching percussion Kayamandi, Lückhoff and Makupula Secondary Schools. The
venue of choice for 2019 was the Old Lückhoff Building which is
• Best brass performance
part of Stellenbosch University (SU), thus bringing the learners to
• Best pit performance
the campus. Level test comparisons from March to September
• Second place for creative excellence
indicated an average improvement of 20% or more in all three
• Second place for winter guard best show design trophy
grades. Physical sciences pre- and post-test comparisons also
The band is led by Thulani Dupa who has participated in a year’s displayed an overall increase from pre- to post-test in all grades.
exchange with Norway and also won “Man of the Year Award” The Grade 12 NCS-2019 results were good with 60% of this
in 2018. group currently studying at SU. (www.sun.ac.za)
The FBF uses the joyful and transformative power of Columba Leadership – offers a values-based leadership
marching bands to prepare self-confident and healthy programme to high schools. The programme helps to transform
young people to participate in a vibrant society. The Cape the culture of schools and ensures a more conducive learning and
Whalers is one of 20 such projects around the country. development environment. It also helps young people to become
(www.fieldband.org.za) resilient young leaders who are more likely to successfully make
the transition into employment or further study after they leave
ENTREPRENEURSHIP, TRAINING AND school. Columba maintains the partnership with schools over a
EDUCATION number of years to ensure that capacity is built amongst school
TSiBA – is an accredited non-profit higher education institution stakeholders to sustain the impact of the leadership programme
offering undergraduate and postgraduate business qualifications. and to ensure that many young people benefit from this powerful
TSiBA aims to provide ambitious, purpose driven students model of values and effective engagement of youth as partners
in change. (www.columba.org.za)
who want to take South Africa forward with a world-class and
rewarding business education. This is supported by generous Community Keepers – provides free, professional individual
tuition scholarships which enable students to contribute towards and group counselling to children, their educators and parents
their tuition at relative levels of affordability. TSiBA Business at dedicated school-based offices in marginalised communities.
School’s undergraduate students pay only what they can afford, The aim of the programme is to promote mental health and
thereby removing financial barriers to tertiary education. No build a culture of wellbeing where each child can realise their
fees are payable for undergraduate students whose household potential, cope with the normal stresses of life, and function as
income is less than R350 000 per annum. productive members of the community. Community Keepers’
Sustainable Development Report 2020 10offices are a safe space where children are free to share their Schools Project – as part of this CSI initiative, Remgro’s
story. High self-referral rates bear testimony to the trust placed Stellenbosch Schools Project aims to create an environment
in them and reported changes in behaviour are evidence where learners are given the opportunity to develop
that, with help, children migrate from a cycle of trauma and holistically to reach their full potential. At present,
hopelessness to a place of self-efficacy and strengthened 21 schools in the Stellenbosch area, which forms part of the Cape
resilience. During the Covid-19 pandemic and lockdown with Winelands district, are involved in the project.
social distancing, Community Keepers has extended their This initiative includes learner support programmes to address
offering to include tele-therapy and various digital content literacy, numeracy, life skills, leadership, sport development as
formats. (www.communitykeepers.org) well as assistance to teachers in some schools.
Helpmekaar Bursary Fund (HSF) – for 104 years this fund has Support to school leadership and management includes principal
been involved in providing students of all races with the means support, capacity building and training for senior management
to further their studies at institutions of higher education. The teams and school governing body training.
organisation consists of two entities:
The impact of Covid-19, a global pandemic has changed the way
• The HSF NPC which makes loans available to prospective we think about life, health and survival. For the communities we
students for the duration of their studies at very favourable worked in it has become another struggle that was added to the
interest rates. list of existing difficulties. Thousands of learners were affected by
• The HSF Trust which enables the fund to give bursaries to, the closure of schools. More severe for disadvantaged children
amongst others, needy students whose parents cannot and their families causing interrupted learning, compromised
afford the interest on their loans whilst they are studying. In nutrition, childcare problems and economic cost to families who
could not work.
2020, the HSF awarded interest bursaries to 240 students.
An additional eight full bursaries were also awarded to The Stellenbosch Schools Broadband Initiative (SSBI) has been
previously disadvantaged students. A further 40 students started by Remgro to roll out broadband access to all the schools
were helped through a partnership with Lux Mundi Training in the Stellenbosch municipal area. The aim of the initiative is
(Skills Development in Grassy Park and Mitchells Plain). to act as a catalyst in closing the digital divide that exists in the
(www.helpmekaarfonds.org) Stellenbosch area. Each school learner in the area should have
an equal opportunity to be exposed to the new digital era. In
The Click Foundation – the primary focus is the implementation total, 37 of the approximately 40 schools in the area, including
of online English literacy programmes in underprivileged two training centres, have been connected to the network.
primary schools across South Africa. The programmes offer This includes rural schools in the farming district. The service
young learners, through fun and enjoyable activities, the is superior to the existing commercial offerings and creates an
opportunity to work at their own pace and to navigate their environment conducive to learning and experimenting with
learning journey by means of technology. The literacy project technology and digital offerings.
supports the Department of Basic Education’s policy goal of all
children learning to read fluently, and with comprehension, by ENVIRONMENT
the end of Grade 3. (www.clickfoundation.co.za) Peace Parks Foundation (PPF) – PPF was founded in
The Mandela Rhodes Foundation – a Mandela Rhodes February 1997 by the late Dr Anton Rupert, the late
Scholarship is much more than a bursary. It constitutes a unique Prince Bernhard of the Netherlands, and the late former
leadership development opportunity on the African continent. president of South Africa, Dr Nelson Mandela. The Peace
After a rigorous nomination and selection process, young Parks dream is to reconnect Africa’s wild spaces to create a
Africans who show academic prowess, as well as demonstrated future for man in harmony with nature. In order to achieve this,
leadership potential, are elected to the Mandela Rhodes the Foundation works to renew and preserve large, functional
Scholarship programme. They are given the opportunity to ecosystems that stretch across international boundaries.
complete a postgraduate degree at Honours or Masters Level Peace Parks engages with governments to secure protected land,
at a South African university, while simultaneously participating and channels investment into development of transboundary
in a customised leadership development programme devised conservation areas. The organisation implements innovative
for each participant under the leadership of the scholarship strategies to restore ecological functionality and protect
manager. This includes attending three special leadership biodiversity. This includes the translocation and resettlement of
development workshops per year on the themes of leadership, thousands of animals in previously decimated wilderness areas,
reconciliation, and entrepreneurship. The Mandela Rhodes as well as investing significant resources in the reduction of
Foundation has thus far granted 529 scholarships to recipients wildlife crime.
from 28 African countries. (www.mandelarhodes.org)
At the same time, Peace Parks develops nature-based tourism
SA College for Tourism (SACT) – academic year commenced opportunities to ensure the long-term sustainability of protected
on 14 January 2020 when SACT: Tracker Academy accepted areas, and capacitates communities – unlocking opportunities
16 young men and women in their Class of 2020, joining eight for them to derive equitable benefits from conservation, whilst
young individuals, who had completed their first semester sustainably utilising the natural resources. (www.peaceparks.org)
training at the Academy in the latter part of 2019.
WWF South Africa (WWF-SA) – for over 50 years, WWF-SA
A week later 85 young women and seven young men reported has played a key role in conserving our precious natural
to the SACT: Hospitality Training Division while at SACT: Herding resources and in finding solutions for environmental issues of
Academy, 12 students started their training. At the time a record national and international importance. However, the challenges
number of the Colleges 2018 graduates had been deployed in have increased rather than diminished and at present South
gainful positions within tourism and conservation industries of Africa’s natural resources are under threat as never before.
Southern Africa. (www.peaceparks.org/sact/) Climate change, irresponsible mining and fisheries practices,
11 Remgro Limitedas well as rhino poaching, are just some of the issues WWF-SA SUSTAINABILITY AT OPERATING SUBSIDIARIES
is grappling with. Ultimately, conservation is about people Remgro’s four main operating subsidiaries, namely RCL Foods,
and about changing people’s behaviour. WWF-SA exists to Distell, Siqalo Foods and Wispeco, are operated and managed
ensure a future in which people live in harmony with nature. on a decentralised basis as independent entities with autonomous
(www.wwf.org.za) boards of directors. Only summarised “non-financial“ disclosure
relating to their governance structures, as well as social and
HEALTHCARE
environmental performance is provided in this report, while
Organ Donor Foundation of SA – for the past 32 years the
their financial performance is discussed in more detail in the
Foundation has played a critical role in obtaining life-sustaining
“Investment reviews“ section on page 38 of the Integrated
organs for those in need of a transplant. For recipients the
Annual Report.
availability of organs is often a matter of life or death. During
the past year, Remgro again made a contribution to this
admirable cause by sponsoring four flights for the transportation
of organs. A special word of thanks must go to the staff of the
aviation company Falconair for their wonderful support in this
regard. They have indirectly contributed to the saving of 15 lives
during 2019 and into 2020 through their active participation in
flying surgical teams and organs for transplant. (www.odf.org.za)
RCL FOODS
SPORT DEVELOPMENT INTRODUCTION
SA Golf Development Board (SAGDB) – since 1999 the SAGDB
RCL Foods has two divisions: Food (which houses the
has grown a network of coaches and officials who work across
Groceries, Baking, Chicken and Sugar business units) and
the country to develop the game in cities as well as in remote
Vector Logistics, supported by common group functions.
areas. The SAGDB is the development service provider to all
Through them, the group manufactures and distributes
14 golf unions in South Africa. SAGDB has 2 601 active players
over thirty of South Africa’s much-loved brands – including
in the programme, with 46 trainers coaching the players across
Rainbow chicken, Selati sugar, Supreme flour, Sunbake bread,
the country. Coaching sessions are conducted on a weekly basis.
Nola mayonnaise, Ouma rusks, Yum Yum peanut butter,
(www.sagolfboard.org)
Simply Chicken, Number One mageu, Bobtail and Catmor pet
Endurocad SA Endurance Academy (Endurocad) – provides food, and Epol and Molatek animal feed. The business also
a complete solution for elite athletes specialising in the field manufactures a wide range of private label food products for
of endurance running. The programme aims to identify and to various retail and food service customers.
holistically develop world class female athletes in South Africa.
The athlete development programme provides high quality With over 21 000 employees at 230 operations across South and
boarding and lodging, professional coaching, race management Southern Africa, RCL Foods is one of the top 100 companies
as well as other services. The career development programme listed on the JSE. Through its diverse portfolio of brands and
aims to ensure the long-term sustainability of athletes and private label products, its dedicated foodservice arm and its
focuses on educating and empowering young female athletes route-to-market specialist, Vector Logistics, the company
through skills, life and enterprise development, with a special strives to provide “More food to more people, more often”.
focus on athletes in the regional group.
GOVERNANCE, RISK MANAGEMENT AND
During 2020 Endurocad also introduced “The Daily Mile” to COMPLIANCE
Primary Schools to improve the health and wellbeing of children.
RCL Foods’ board consists of 12 non-executive directors
(www.endurocad.co.za)
(seven of them independent) and two executive directors.
Stellenbosch Academy of Sport (SAS) – since establishment The Chairman of the RCL Foods board, Mr Jannie Durand,
in 2012, SAS has been a preferred high-performance training is not independent given his role as CEO of Remgro Limited,
base for many local and international athletes and teams. In RCL Foods’ major shareholder. For this reason RCL Foods
addition, SAS has focused on impacting the community through appointed Mr R V Smither as Lead Independent Director on
its “Wellness – making Stellenbosch Healthier” CSI programme. 30 August 2011, to act as chairman during meetings in situations
The programme uses football, netball and other sport codes where the Chairman’s independence could be conflicted.
to bring youth (and families) together across the ten “dorpies”
of Stellenbosch to educate them on healthy living and cultural As RCL Foods is a listed company, it has to comply with the
diversity. SAS Wellness Champions are being developed and work JSE Listings Requirements and the King IV Report on Corporate
with over 20 different schools in maintaining this programme. Governance for South Africa (2016) (King IV), to the extent that
The Stellenbosch Football Club (SFC) (now the first-ever King IV’s recommended practices have been incorporated in the
PSL team from the Winelands) also contributes to this JSE Listings Requirements. The Social and Ethics Committee, a
programme and has already proven to be a catalyst in building a subcommittee of the RCL Foods board, reviews and monitors
sustainable football pathway and brand for the Winelands region, the company’s performance in areas such as good corporate
through social upliftment and inspiring a healthy community. citizenship, consumer relations, employment equity and labour
(www.stellenboschfc.co.za) relations. The Risk Committee, another subcommittee of the
Due to the Covid-19 pandemic and lockdown, SAS and SFC board, is responsible for overseeing the adequacy and overall
redirected their CSI programmes during the last quarter effectiveness of the group’s risk management function and its
of the financial year to focus on providing food on a weekly implementation by management. It is assisted by an internal audit
basis to the most vulnerable communities within our area. department that comprises a dedicated team of appropriately
(www.sastraining.co.za) qualified and technically experienced personnel.
Sustainable Development Report 2020 12You can also read
